Year-to-date registrations in Europe's largest auto market were still up 3 percent on year-earlier levels at 1.79 million vehicles, VDA said, confirming a Reuters story.

The industry association said it expected German domestic car production and exports to fall 2 percent each this year to 5.6 million and 4.3 million autos respectively.

Carmakers are watching with concern the falling market share of Euro-6 diesel vehicles and the rising share of fuel-powered vehicles which emit higher levels of carbon dioxide (CO2) emissions, said VDA which represents suppliers and carmakers including Volkswagen, Daimler and BMW .

With German national elections less than three months away, the country's auto industry is expected to contribute towards a plan to cut pollution from diesel engines to help improve air quality and restore trust that was pared down by VW's 2015 emissions scandal.(Reporting by Andreas Cremer; Editing by Maria Sheahan)